Solution-Compute monthly flexible budget for each increment

Compute monthly flexible budget for each increment of sale

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Reference no: EM131132698

DeWitt Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from$170,000 to $200,000 Variable costs and their percentage relationship to sales are:

Sales commissions	6%
Advertising	4%
Traveling	3%
Delivery	2%

Fixed selling expenses will consist of:	Sales salaries	$35,000
	Depreciation on delivery equipment	7,000
	Insurance on delivery equipment	1,000

Instructions

Prepare a monthly flexible budget for each $10,000 increment of sales within the relevant range for the year ending December 31, 2014.

Reference no: EM131132698

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Compute monthly flexible budget for each increment of sale

Reference no: EM131132698

Reference no: EM131132698

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